Market Trends of Smartphones Industry
Android Operating System is Expected to Grow Significantly
• According to a StatCounter report released in December 2023, Android remained the world's most popular mobile operating system, with a market share of 70.48%, while iOS accounted for roughly 28.8%.
• Furthermore, many application developers prefer Android OS to develop gaming/entertainment applications, social media applications, mobile utility applications, and lifestyle applications, as it requires the developers to know languages such as C++, Kotlin, and Java, among others. Moreover, Google also offers various development tools, such as Android Jetpack, Firebase, and AndroidSDK, to assist developers in building a user-intuitive interface.
• Additionally, the platform allows users to download applications free of cost. However, the applications are designed to offer in-app purchases and in-app course subscriptions that have generated more revenue in Google Play Stores than in Apple Stores.
• The increasing demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as energy management and smart home products, is anticipated to propel the adoption of 5G smartphones.
• In December 2023, POCO unveiled its new Series named POCO M6 with 5G support, which raises the bar for smartphone imaging and luxurious design. POCO M6 5G delivers a screen size of 17.12 cm (6.74 inches) HD+ display with a Mobile Height of 168 mm, Depth of 8.19 mm, and Weight of 195 g. POCO M6 5G packs with 50MP AI Dual-Camera System and 5MP Front Camera. POCO M6 5G powered by the MediaTek Dimensity 6100+ Octa Core Processor. The smartphone comes with 4GB RAM and 128GB Storage, which is expandable up to 1TB.
Asia-Pacific is Expected to Hold a Significant Market Share
• Asia-Pacific is one of the significant markets for smartphones, primarily owing to the highly developing telecom sector and large customer base. Furthermore, the region is increasingly investing in the mobile network. Countries such as India, Japan, Australia, Singapore, and South Korea are increasingly investing in developing the domestic telecom market, which is also expected to drive the market in the region.
• The demand for smartphones at the entry-level price points is expected to be driven by the increasing demand from the developing countries in the region, such as India and Indonesia, where smartphones are increasingly penetrating rural areas as local governments push for digital and mobile economies. For instance, the Digital India program is a flagship program of the Government of India primarily aimed at transforming the country into a digitally empowered society.
• Various schemes and incentives have been implemented to support India's electronics manufacturing sector. These measures include incentives for significant investments in the electronics value chain, promotion of exports, and action to promote semiconductor production.
• Further, the Government of India has reduced customs duties on parts of smartphones in the Union budget of 2023 to 2024 to boost local production; in the case of the production of smartphones, this will further increase domestic value addition. Mobile phone production in India had increased from 5.8 crore units valued at about INR 18,900 crore in 2014-15 to 31 crore units valued at over INR 2,75,000 crore in the last financial year (2022-23) because of various initiatives of the government, including the `Phased Manufacturing program.'
• The key vendors in the smartphone market are focusing on improving their product offerings and introducing new products across this region. For instance, in October 2023, Google launched the Pixel 8 Series, OnePlus launched its first foldable OnePlus Open, Vivo launched the Vivo V29 Series, and Samsung made the Galaxy S23 FE official.
• The rise in the urban population, increased consumer awareness regarding mobile device usage, the surging integration of AR technology, and expanding over-the-top (OTT) platform subscriptions are expected to drive the market's expansion in the coming years.
• In mainland China, rising smartphone adoption and the availability of 4G have resulted in a surge in mobile internet usage that supports the country's movement up the digital society value chain. More than 990 million people use mobile internet services, which is expected to increase by 200 million by 2025.
